British Council: Funding

Lord Howell of Guildford Excerpts

Thursday 19th July 2012 Lords Chamber

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, I join in thanking the noble Lord, Lord Bach, for introducing this important topic. Like others, I am only sorry that the debate has come at the end of the day and that we have not had greater opportunities, which we may have in the future, for discussing the whole broad canvas of soft power and smart power, and the new techniques in this internet age for developing the promotion of our interests, cultures and values, of which the British Council is a central part.

In fact, I will begin at the end and say simply to the noble Lord, Lord Liddle, that I can certainly give that assurance. Certainly we see the British Council, as many of us have done for decades, as a central part of the promotion of the interests of this nation and, indeed, the promotion of all that we can contribute to world peace and stability. I totally agree with much of what the noble Lord, Lord Bach, said. In fact, a good deal of it was in the speech I was thinking of making, so I do not need to repeat it. I balk only at his point about blindness. That hurts a little, because some of us have for decades been pointing this out, from the days of the famous House of Commons Foreign Affairs Committee report of the 1980s, when I think the phrase “cultural diplomacy” first began to circulate.

As a result of that report, which I had the honour of participating in—although not as chairman of the committee—we have increasingly been pointing out that in the world we are moving into, cultural diplomacy, the promotion of values and attitudes, will be as powerful if not more powerful than ranges of carrier fleets, rockets and heavy military equipment—as the noble Lord, Lord Alderdice, rightly reminded us. This is the pattern for the future, where hard and soft power must be brought together in an agile use of smart power within our resources and in a highly effective way. I agree with much of that.

I pay tribute to the work of the council and its staff, operating sometimes in extremely difficult and dangerous circumstances. This especially applies to its work in recent years in Afghanistan, Libya and Iraq.

I agree with those of your Lordships who said that the council has a global reputation. It has, as the noble Lord, Lord Bach, reminded us, 191 offices in 110 countries, and many millions of people have passed through the doors of the British Council to learn English or to make use of the other services that are offered. It is therefore a key opinion former and shaper. When people think of the United Kingdom, of Great Britain—of what it stands for and what it seeks to do—the picture the British Council paints is part of the important work that we all seek to do. The council is the cultural relations arm of the United Kingdom—of our country. It is aligned to the priorities of the Government of the day, but importantly, it is not part of the Government of the day. Its status—not least its operational status—sets it apart not only from other institutions of ours, but also from its international peers such as the Goethe Institute, the Institut Francais, the Instituto Cervantes, and now, interestingly, the growing number of Confucius Institutes, of which there are now 324 in 94 countries. I think that figure is two years out of date; it is probably more than that now. The Chinese model is very different from our own, I suspect, in its relationship with its government. It is spreading all the time, and in all corners of the earth.

The UK has a remarkable set of soft-power assets. Years ago, in the report I mentioned, we looked particularly at the BBC World Service and the British Council, but of course the whole range of soft-power instruments is far greater. Its central purpose, or aim, or set of tools, is the ability to influence the actions of others through attraction rather than coercion. It is working to exert this influence in order to achieve our national interests in an interdependent world, and to maximise our contribution to the stability, balance and prosperity of that world. In one of his first speeches when he took office, my right honourable friend the Foreign and Commonwealth Secretary talked of a networked world where connections between groups and individuals across the globe are a key part of the relations between nations. It is not just a matter of government to government, diplomat to diplomat, but of engaging fully with all sectors of society on a basis of mutual respect.

In the United Kingdom we seek to foster and strengthen these connections, and it is in this that the British Council can play such a key role. The message of the debate this evening has been perfectly clear; it is certainly one that I am well aware of and will carry back to all my colleagues in the Government. We see the immense value of the British Council, and obviously there is a wish that its funding and support is not attenuated.

People know that talking to the British Council is not the same as talking to the British Government, and that this opens up new avenues for engagement. Some who engage with the council will obviously be less willing to engage with the British Government; that is inevitable. So I will highlight that essential role and, incidentally, highlight one particular aspect of it, and that is the role of the Commonwealth network and how the British Council interrelates with it.

We have talked about linkages and common values, and of course the Commonwealth is an exemplar par excellence of that. It gives this country a unique advantage which many other countries envy. The British Council works in the majority of Commonwealth countries to reinforce the bond of trust through education, the arts, English language programmes and many other aspects. In fact, the British Council ran the Connecting Classrooms programme which led up to the Commonwealth Heads of Government Meeting in Perth last autumn. It works closely all the time with Commonwealth institutions and expects to be active in the UK in the build-up to the Commonwealth Games to be held in Glasgow in 2014.

There is no question but that this Government, like the previous Government, see the British Council’s main objective as building trust between countries and peoples and cultural relations between countries, and to improve the level of understanding between their peoples as well as provide a common space in which to meet and engage with each other. This in turn increases the level of trust between them. As the noble Lord, Lord Kinnock, pointed out in his eloquent intervention, the council states in its annual report that it has worked face to face with 12.5 million people in the calendar year up to 2011-12, which is an increase of 2 million compared with the year before. Overall, as the noble Lord again pointed out, the council has engaged with 35 million people world-wide. These are achievements that it can be proud of and they go hand in hand with a tribute that I am glad to pay to the noble Lord and to the previous chairmen of the British Council, and of course to those who are now operating with it. I concur with the remarks made about Mr Davidson, who has been extremely effective. I have more than once had the privilege of meeting him and discussing the council’s work.

The council’s work in promoting Britain has brought more and more visitors to these shores. They come to study here, to invest here, and to understand and embrace our culture. It has also helped countless others to build enduring links with this country. Something which I do not think is always understood outside—the noble Lord, Lord Alderdice, was right to say that its work and its nature are not as widely understood as they should be—is that, unlike many of its international counterparts, the British Council has two sections: there is the work that is funded by the FCO through the grant in aid, about which I shall say more in a moment, and there is the work which is directly tied to cultural relations. By far the lion’s share of the council’s present income comes from its commercial work. The noble Lord, Lord Kinnock, and others have described how that has been built up with immense success. Its English language teaching, its examination services and, increasingly, its work in managing contracts have all been areas of growth. However, I should emphasise that there is a firm division between the two sorts of work, and each year the council’s auditors certify that their full cost recovery work is not subsidised by the Government.

Like all publicly funded bodies, the council has had to play its part in helping achieve the Government’s fiscal consolidation plans. I know that there is endless debate and challenge about the nature of those plans. I have to say that when the council’s grant in aid was cut under the 2010 spending review, that was not done with enthusiasm by someone wishing to make cuts, but under the dictate of the grim necessity of sharing the burden and making proportionate cuts. We accept fully that this has presented the council with a serious challenge. It is clear that it has risen to that challenge. It has restructured its operations and reduced staff numbers. It has found new ways of working efficiently and effectively.

The British Council has committed itself to ambitious expansion plans, increasing the turnover from £707 million in 2009-10 to £969 million by 2014-15. That naturally means that the grant in aid will fall as a percentage of the total from 26% to 16%. That sounds dramatic, but overall this is the language not of contraction but of expansion. The budget is set until the end of 2014-15.

We have not started on the process of discussing the next spending review, but the Foreign and Commonwealth Office will ensure that the British Council is kept engaged throughout the process. As your Lordships will recognise, it is impossible to say what any new budget levels will be. I say to the noble Lord, Lord Jay, that designating part of the FCO expenditure as ODA-able does not make any difference to the size of the expenditure or where the money comes from; it merely, as I say, designates part of our expenditure on the grant in aid as contributing towards the total overseas development assistance of the nation. We believe that the current restructuring of the British Council will provide a firm basis for its future expanding operations. We are confident that the council is maintaining the right balance between its work in English, arts and education and society, and that all of its activities contribute to its charitable purposes.

I reassure the noble Baroness, Lady Grey-Thompson, after her very moving speech, that the British Council will not merely carry on but can be a more dynamic and effective partner in our national endeavour—as it has already been over the past 78 years. Its first charitable objective states, as the noble Lord, Lord Bach, reminded us, that it shall,

“promote cultural relationships and the understanding of different cultures between people and peoples of the United Kingdom and other countries”.

Therefore, I congratulate the British Council on the immense success it has had so far. We believe that this success can be built upon despite the economic difficulties that we face at the moment as a nation. We believe that its work can adapt to the changing world in which we live. I am confident that the council will continue to spread through the world the values that we hold so dear. I once again reassure your Lordships that the Government are fully apprised of the value of this spearhead of our reputation, our soft power, in a dangerous and difficult world.

House adjourned at 8.12 pm.